Recent financial reports from NetEase Games reveal a push for cost reduction and strategic refocusing, impacting several international studios. While the company reported revenue growth, declining profits have prompted a shift in strategy, according to sources.

Following Bloomberg's report on potential cost-cutting measures, further information suggests NetEase is exploring options for its overseas studios, including selling them off. This restructuring reportedly stems from CEO William Ding's desire to consolidate resources and prioritize a smaller portfolio of games.

NetEase has addressed recent layoffs within its development teams, acknowledging the restructuring efforts. Reports indicate that multiple overseas studios are being 'actively shopped around,' including some newly established divisions and even prominent studios like Quantic Dream, known for developing Heavy Rain.

If buyers aren't found, the potential closure of over a dozen studios looms, a significant number of which haven't yet released a game.  Since 2022, NetEase has established several studios led by industry veterans like Hiroyuki Kobayashi (formerly of Resident Evil), Mac Walters (Mass Effect), and Sean Crooks (Watch Dogs). These studios, including GPTRACK50 Studios, Worlds Untold, and Bad Brain Game Studios, are now facing an uncertain future.

While NetEase holds minority stakes in various international developers, such as Rebel Wolves (The Blood of Dawnwalker), these partnerships appear unaffected by the current restructuring. The timeline for these studio sales remains unclear, though NetEase has already paused operations at Worlds Untold and Jar of Sparks.